Ms. Rebecca Matthews
Frontier Power Products Ltd.
7983 Progress Way
Delta, BC V4G 1A3
Date of issuance of ruling:
This is in response to a request submitted on your behalf by Russell A. Farrow Limited, for an advance ruling on the tariff classification of diesel compression-ignition internal combustion engine generator sets (model #s 350REOZJ, 400REOZJ and 500REOZJ). These products are exported from Kohler Co., 444 Highland Drive, Kohler, Wisconsin 53044.
The goods at issue are diesel compression-ignition internal combustion engines Kohler Co. diesel generator sets (Model #s 350REOZJ, 400REOZJ and 500REOZJ). Each is imported as a singular assembled unit with enclosures and tanks. All have an electrical output rating capability ranging from 400 to 625 KVA. The goods are imported as a singular assembled unit with enclosures and tanks.
Analysis and Justification
The generator sets meet the requirements Explanatory Note (I) ELECTRIC GENERATING SETS to heading 85.02, which reads as follows:
The expression "generating sets" applies to the combination of an electric generator and any prime mover other than an electric motor (e.g., hydraulic turbines, steam turbines, wind engines, reciprocating steam engines, internal combustion engines) (emphasis added). Generating sets consisting of the generator and its prime mover which are mounted (or designed to be mounted) together as one unit, or on a common base (see the General Explanatory Note to Section XVI,
Part (VII) Functional Units), are classified here provided they are presented together (even if packed separately for convenience of transport)."
In your request, you state the following:
"The goods are imported as a singular assembled unit with enclosures and tanks. … The items are generator sets and their parts and accessories. More specifically, Kohler part numbers 350REOZJ, 400REOZJ and 500REOZJ, are all generator sets with enclosures and accessories.
It is our belief that these units with the fuel tank, bases, enclosures and miscellaneous parts included and attached to the base generator set would, and should be classified as 8502.13.00.00 with one total line value as these goods are purchase ordered, sold and shipped as one unit with everything attached and this tariff best describes the essential characteristic of the unit."
If the generating sets being imported are as you describe above, i.e., generating sets with the fuel tank, bases, enclosures and miscellaneous parts included and attached to the base generator set, then the generating set and the aforementioned goods would all be classified as a generating set. Subheading 8502.13 provides for diesel (compression-ignition internal combustion engine) generating sets exceeding 375 KVA.
If however, there are parts and accessories included in the shipment which are not attached to the generating set, then those parts and accessories must be classified separately on their own merits.
Section 10 of the Customs Tariff directs that classification of imported goods shall be determined in accordance with the General Rules for the Interpretation of the Harmonized System. Section 11 of the Customs Tariff states that in interpreting the headings and subheadings, regard shall be had to the World Customs Organization's (WCO) Explanatory Notes to the Harmonized Commodity Description and Coding System.
General Interpretative Rule 1 (GIR 1) directs that titles of Sections, Chapters and sub-Chapters are provided for ease of reference only. For legal purposes, classification shall be determined according to the terms of the heading and any relative Section and Chapter Notes. Similarly, General Interpretative Rule 6 (GIR 6) directs that classification shall be determined according to the terms of those subheadings and any related Subheading Notes.
The above-noted generator sets are classified under 8502.13.00.00, as a compression ignition internal combustion engine generator sets exceeding 375 KVA, in accordance with General Interpretive Rules 1 and 6.
This ruling has been issued under paragraph 43.1(1)(c) of the Customs Act and will be honoured by the CBSA for future importations of the goods specified, provided the material facts and circumstances remain as originally presented; all conditions in the ruling have been met; the ruling has not been modified, revoked, revised, or cancelled; and the Customs Tariff legislation has not changed. Should there be a change in the material facts or circumstances pertaining to the goods, you must notify the CBSA as soon as possible. You may request that the Advance Ruling be modified or revoked as of the date of the change.
Importers should quote the advance ruling number at the time of importation in either the description field of the B3 entry document or on the Canada Customs Invoice. Exporters or producers should quote the advance ruling number on the Certificate of Origin or commercial invoice accompanying the goods.
Should you disagree with this advance ruling, you may file a dispute notice under subsection 60(2) of the Customs Act within 90 days of the date of issuance. Please see the procedures outlined in Appendix C of the CBSA's Memorandum D11-11-3, Advance Rulings for Tariff Classification.
Please be advised that the goods covered by this advance ruling are provided for in a specific tariff provision that is considered 'reason to believe' for the purposes of section 32.2 of the Customs Act and the CBSA's Administrative Monetary Penalty System, described in Memorandum D22-1-1. In the event that you have been classifying these goods elsewhere in the tariff, you are obligated to self-correct. See Memorandum D11-6-6 for information on self-correction/self-adjustment.
All Memoranda referenced in this letter may be accessed on the CBSA website.
Consent to the Public Release of the Advance Ruling
As per your consent statement, we will release this advance ruling to the public, in both official languages, in accordance with the procedures described in Memorandum D11-11-3. The ruling will be published on the CBSA website in 30 days.
Manager, Tariff Policy Unit 'B'
Trade Policy Division
- Date modified: